Recently, the CFPB took action against Wells Fargo Bank for breaking federal consumer protection laws that apply to financial products, including auto loans, mortgages, and bank accounts. Wells Fargo is required to pay more than $2 billion to customers who were harmed, plus a $1.7 billion fine that goes to the victims’ relief fund.
One in three American households is a Wells Fargo customer and affected by its corporate culture and business practices. If you have a Wells Fargo account, here’s information to help you understand whether you may have been harmed, how payments are being distributed, and what else to watch for.
Customers with three types of accounts were harmed
More than 16 million accounts at Wells Fargo were subject to their illegal practices, including misapplied payments, wrongful foreclosures, and incorrect fees and interest charges.
Auto loan customers
- Some auto loan borrowers prepaid for GAP coverage, which insures the amount owed on a car loan if you have an accident or your car is stolen. Wells Fargo acted unfairly by not refunding money when the loan terminated early—for example, if it was paid off ahead of schedule.
- Some customers’ auto loan payments were not applied correctly to their balances, leading to higher interest charges, late fees, and wrongful repossessions.
- Some auto repossessions were also mismanaged, including how the vehicles were sold after repossession.
Mortgage loan borrowers
- Some mortgage loan borrowers were…
